Mortgage Rates Have Tumbled To Lowest Of The Year

The average 30-year fixed-mortgage rate is 3.80 percent, down 2 basis points since the same time last week. It was 2.88 percent a year ago.

As was the case for the past couple of days, there weren't many changes in mortgage rates Friday - but the changes that did occur were almost all for the better. Just 11 percent of this week's respondents predict a rebound in mortgage rates in the next seven days. The 15-year, fixed rate, at the same time, averaged 3.19 percent, while the 5-year, Treasury-indexed hybrid adjustable rate averaged 3.11 percent.

Monthly payments on a 5/1 ARM at 3.17 percent would cost about $431 for each $100,000 borrowed over the initial five years, but could climb hundreds of dollars higher afterward, depending on the loan's terms.

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The average rate for a 15-year FRM was 3.19%, unchanged from the previous week.

It's a big reason why many mortgage borrowers opt for a rate that's fixed in order to nix any notion of interest variability.

Both 15-year fixed rate mortgages and 5/1 ARMs effective rate decreased this week.

"The rates on ARMs today are often at least 50 basis points lower than the 30-year fixed rate, which means you probably can claim an ARM in the mid three-percent range with no points", said Steven Maizes, vice president of mortgage lending for Guaranteed Rate in Los Angeles. The points decreased from 0.39 to 0.32, including the origination fee, for 80 percent loan-to-value ratio (LTV) loans.

  • Zachary Reyes